The Canadian dollar touches its strongest since 3 March at 1.2596. The Canadian dollar was little changed against its US counterpart on Friday, with the currency holding near a two-week high as oil prices rose and domestic retail sales data pointed to consumer spending remaining strong at the start of the year.
The Canadian dollar was trading nearly unchanged at 1.2631 to the greenback, or 79.17 US cents, after touching its strongest level since March 3 at 1.2596. For the week, the currency was on track to advance 0.9% as equity markets took in stride the Federal Reserve’s first interest rate hike since 2018 and hotter-than-expected domestic inflation data, which supported expectations for further tightening from the Bank of Canada.
Canadian retail sales bounced back in January, rising a stronger-than-expected 3.2%, as shoppers ventured out to car dealerships and home improvement shops, though a preliminary estimate showed February retail sales falling 0.5%.
It looks like activity pulled back in February, likely with some diversion into services spending as (COVID-19) restrictions loosened in that month. Overall, consumer demand remains robust, even as another month of strong inflation eroded some purchasing power.
Global stocks clung to their gains for the week but a heady cocktail of rising interest rates, high oil prices and no end to war in Ukraine kept a lid on the rebound. The price of oil, one of Canada’s major exports, added to the previous day’s rally as slim progress in peace talks between Russia and Ukraine raised the expectation of a prolonged disruption to oil supply.
US crude prices were up 0.9% at $103.93 a barrel. Canadian government bond yields edged higher across the curve, with the 10-year up 1 basis points at 2.198%. On Wednesday, it touched its highest level since December 2018 at 2.273%.<\/p>\n","protected":false},"excerpt":{"rendered":"
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